Which one of the following four statements regarding counterparty credit risk is INCORRECT?

Which one of the following four statements regarding counterparty credit risk is INCORRECT?
A . Counterparty credit risk refers to the inability to realize gains in a contract with a counterparty due to its default.
B . The exposure at default is variable due to fluctuations in swap valuations.
C . The exposure at default can be negatively correlated to probability of default.
D . Dynamic collateral provisions often increase counterparty risk considerably.

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Answer: B